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Dwnload Full International Business 16th Edition Daniels Solutions Manual PDF
Dwnload Full International Business 16th Edition Daniels Solutions Manual PDF
https://testbankfan.com/download/international-business-16th-edition-daniels-solution
s-manual/
PART TWO
COMPARATIVE ENVIRONMENTAL FRAMEWORKS
CHAPTER 2
THE CULTURAL ENVIRONMENTS FACING BUSINESS
OBJECTIVES
2-1 Explain why culture, especially national culture, is important in IB, but tricky to assess
2-2 Grasp the major causes of national cultural formation and change
2-3 Discuss major behavioral factors influencing countries’ business practices
2-4 Recognize the complexities of cross-cultural communications
2-5 Analyze guidelines for cultural adjustment
CHAPTER OVERVIEW
When companies source, manufacture, and/or market products in foreign countries, they
encounter fascinating and often challenging cultural environments. Chapter Two examines the
dynamics of culture and its effect upon international business operations and strategy. Culture
and business practices are ever changing and these shifting trends are incorporated in the cases
and examples. While exploring the causes of cultural differences, rigidities, and changes, it
focuses upon the impact of cultural traditions on business activities, as well as the mutually
satisfactory reconciliation of cultural differences. The chapter concludes with a discussion of the
ways in which firms can potentially maximize their effectiveness while operating in a world of
complex and dynamic cultural diversities.
CHAPTER OUTLINE
OPENING CASE: SAUDI ARABIA’S DYNAMIC CULTURE: THE JAVA LOUNGE—
ADJUSTING TO SAUDI ARABIAN CULTURE [see Map 2.1.]
This case provides a striking example of the challenges presented to foreign firms by a pervasive,
theocratic, national culture. It shows why companies have had mixed success in Saudi Arabia, a
modern yet ancient society grounded in Islamic law, religious convictions, and behavioral
traditions. In particular, the case highlights the example of the Java Lounge, a new, up-scale
Jeddah restaurant that serves an affluent niche of Saudi consumers. Further, it describes ways in
which a variety of foreign firms have adjusted their products, facilities, and operating strategies
in order to meet government requirements and yet satisfy the Saudi consumer. It points out
numerous paradoxes one may encounter regarding Saudi legal sanctions, purchasing patterns,
and attitudes toward work. A key point to make when discussing the case is that even in this
very rigid culture, things are changing. For example, a 2008 royal decree allows men and
Questions
2.1 Assume you are a manager in a multinational company that needs to send a team of three
to five people to Saudi Arabia for about two weeks to investigate the feasibility of selling
your products there. What advice would you give them to help assure that cultural
problems do not impede their success in this task?
"All questions marked with this blue star in the textbook are also found as discussion
board questions in the MyLab. These are meant to prompt discussion among your students
and therefore, no correct answer is provided."
2.2 Assume your company is from North America or Europe and considering the
establishment of an office in Saudi Arabia. What additional operating costs might it have
to assume because of the Saudi culture?
"All questions marked with this blue star in the textbook are also found as discussion
board questions in the MyLab. These are meant to prompt discussion among your students
and therefore, no correct answer is provided."
TEACHING TIPS: Carefully review the PowerPoint slides for Chapter Two. An
additional source of information on Saudi culture, as well as other cultures, can be
found at www.executiveplanet.com.
Culture refers to the shared values, attitudes, and beliefs of a group of individuals. Often,
people simultaneously belong to different groups representing different cultures and/or
subcultures. Further, every business function is subject to cultural influences. Cultural
diversity means bringing together people of different backgrounds, perspectives, and
experience. Thus, major problems of cultural collision are likely to occur if a firm
implements practices that are less effective than intended and/or employees are unable to
accept or adjust to foreign customs. Thus, it is vital that firms determine which business
practices vary in a foreign country and what adjustments, if any, are necessary. At the same
time, cultural diversity can be a source of competitive advantage for global firms. [see Fig.
2.1.]
Culture is an elusive topic to study, partly because people belong to multiple cultures based
on their nationality, ethnicity, religion, gender, work organization, profession, age, and
When contact among divergent cultures creates problems, the situation is known as a
cultural collision. Such collision may result in a company’s implementation of
practices that are less effective than intended and to its employees’ distress because of
difficulty in adjusting to behaviors abroad.
Another caution should be sounded when relying on cultural studies. First, comparing
countries based upon what people say may be risky. Second, a focus on differences in terms
of averages may overlook specific variations within countries. Third, current cultural
attitudes may change in the future.